How to Become a Wholesale Distributor

Learn how to become a wholesale distributor.

Have you ever found yourself buying so much of a product that you might as well start selling it?

If you knew how to become a wholesale distributor, you could do just that. Better yet, not only is it not that difficult, but being a wholesale distributor can be a very profitable business move.

Read on to learn how.

Things You Will Need

Education on IndustryWholesaler's License

Step 1

Get educated. Your mom told you to always stay in school for good reason. Classes, particularly college or higher level classes can teach you an immense amount about any field of study in a short span of time.

If you're interested in becoming a wholesale distributor then you'll need to understand that you are going to be your own boss. Remember, a wholesale distributor is a business in itself that coordinates sales from manufacturers to other wholesalers, retailers, or end users. There won't be anyone giving you orders, and there isn't a play by play handbook that will direct you.

Sign up for some courses at your local community college or four year institution in management, business, or marketing. These courses may cost you some money, but it'll be well worth having the knowledge that all of your competitors already have. Don't get caught behind the eight ball. Education is crucial in being an entrepreneur.

Step 2

Decide what you want to sell. The most obvious thing you'll need to figure out is what you're actually going to sell. As a wholesale distributor you can sell almost anything, but focus on things that you are already knowledgeable about and interested in. If you've played video games since you were a teenager, do something in that industry.

If you're into sports, think about being a distributor of sporting goods. If the product is something that you are passionate about then you'll do a much better job. It'll be more like a hobby than a job, and who likes jobs?

Step 3

Price and plan it all out. Once you decide on an industry to enter, contact the actual manufacturers. You'll need to get a long list of details from them, including wholesale prices, shipping costs, and delivery times. Compare all of these details to other products that you are considering to see which products will be the most profitable.

In addition to this, compare all of these numbers to what you'd pay at retail prices to see if it's even worth it. If retail isn't that much more expensive, you'll struggle to get end consumers to pay your price.

Step 4

Get funding and go! Once you've sorted out all the details and logistics, you're ready to go. You'll need a fair amount of start-up capital in order to make the initial purchase to get your inventory built up, and you'll also need funds to obtain the necessary permits, to possibly hire an accountant (taxes will be different once you have your business), and a lawyer to look everything over - remember, as a distributor you'll have a lot of contracts.

You'll have contracts between the manufacturers, contracts with retailers, and contracts with end consumers. There's a lot of details that will require startup capital and a good team of employees.

Step 5

Grow, grow, grow. This last step is entirely up to you. Take what you've learned from classes and from your experience and grow your company. It can be a profitable business if you do it right, so talk to those in the industry, read books, and do your research. Make money!

Using these steps, you should be well on your way to
successfully distributing products wholesale. While you're here be sure
to look around for more great information on selling wholesale products.